AUD/USD 1 day: A bounce towards 0.7215 is expected, given the positive sentiment prevailing, but rising Fed hike expectations are a counterweight.
AUD/USD 1-3 month: Eventual resumption of the strong US dollar trend should weigh on the AUD during the next few months. The next major downside target is 0.7000.
NZD/USD 1 day: Stalled between 0.6410 and 0.6560.
NZD/USD 1-3 month: We look to our next major downside target at 0.6200 which was a low in July 2009. The two main factors expected to contribute to NZD/USD weakness during the next few months are RBNZ easing (we expect the OCR to fall to 2.00% by early next year) and Fed tightening (FF mid-point to rise by 25bp in September).
AUD/NZD 1 day: Looking to test the 1.1125 area, given the recent recovery in global risk appetite.
AUD/NZD 1-3 month: The RBA will probably remain on hold (albeit with easing risk), while the RBNZ is currently in easing mode. Expected RBA vs RBNZ direction thus favours AUD/NZD over the medium term. The next major target is 1.1580. [Westpac]